# A to Z of Excel Functions: the FVSCHEDULE Function

18 November 2019

*Welcome back to our regular A to Z of Excel Functions blog. Today we look at the FVSCHEDULE function. *

**The FVSCHEDULE function**

If you have ever been involved calculating financials, you will appreciate interest is a fundamental aspect. Sometimes, interest rates vary and you want to calculate what the amount, including interest, will be worth at a later point in time.

Perhaps the easiest way to think of it is as follows:

- An original amount of $100 this year will increase by 5% next year,
*i.e.*be valued at $105 - That amount of $105 will increase by 10% over the following year,
*i.e.*be valued at $115.50 - That amount of $115.50 will increase by 20% in the third year,
*i.e.*be valued at $138.60.*etc.*

Note that all of these valuations are for a *point* of time not a *period*. This is a common mistake in modelling.

The **FVSCHEDULE **function calculates the future value of an investment based on variable compound interest rates and employs the following syntax to operate:

**FVSCHEDULE(principal, schedule)**

The **FVSCHEDULE** function has the following arguments:

**principal:**this is required and represents the present value**schedule:**this is also required. This represents an array of interest rates to apply.

The values in **schedule **can be numbers or blank cells (treated as 0%) if in cell ranges; cited explicitly, the values must be decimals (percentages and blanks will not work). Any other value produces the *#VALUE!* error value for **FVSCHEDULE**. Each period is assumed to be of equal length and the interest rate is quoted for the period in question (*e.g. *3% per quarter if in quarters).

Please see my example below:

*We’ll continue our A to Z of Excel Functions soon. Keep checking back – there’s a new blog post every business day.*

*A full page of the function articles can be found here. *